Orlando Median Home Price Up to $169,000 - Inventory of Unsold Homes to 13,784 for July 2014
For the seventh straight month, Orlando’s Median Home Price was up in July to $169,000. Inventory of Unsold Homes was up 810 units to 13,784 for a significant 6.2 percent increase for the month. This steady rise in inventory marks a 74 percent increase in inventory since the lows of March of 2013 when inventory was at a multiyear low of 7,928 units. This continuous increase of inventory will exert downward pressure on home prices, although inflation may help keep things balanced out. Mortgage rates were down just a bit to 4.12 percent for a 30 year fixed rate mortgage. Let’s see what else is happening in the Orlando real estate market.
Orlando Median Home Price for July 2014—$169,000
Orlando’s median home price was up again in July for the seventh straight month. Now at $169,000, Orlando’s median home price has increased 15.6 percent so far this year. In 2013 home prices increased 21.7 percent improving home seller’s equity position greatly over the year. Since January of 2012 when Orlando’s median home price was only $109,900, home prices have risen 53.8% here in Orlando Florida. The median home prices for the last three months were:
Orlando Active Homes for Sale Listings (Inventory of Unsold Homes)—13,784 units
In July, the Inventory of Unsold Homes in the Orlando area increased by 810 units for a total of 13,784 which is a 6.2 percent increase since just last month. Last year in July 2013 there were 8,994 homes for sale in Orlando which means there has been a 53.3 percent increase in the number of homes for sale in the past 12 months. This increase in inventory marks the fourteenth straight monthly increase which is worth noting since we are nearing a statistically balanced market of a five to six month supply. If we shoot past a balanced market home prices could suffer. Expect pressure on home prices if inventory levels continue to rise.
Orlando Pending Home Sales (homes under contract)—7,442 units
There were 7,442 Pending Home Sales (homes under contract) in the Orlando MSA for July 2014, down from the 8,202 units this June. Last July there were 9,503 homes under contract which means there was a 21.7 percent decline in the number of pending homes sales this year. This decline in pending home sales shows that fewer homebuyers are submitting purchase offers, which is a negative indicator for home sellers and the market.
Homes Sold (closings)—3,384 units
In July, 3,384 homes sold and closed in the Orlando MSA. Last July 3,438 homes sold and closed which means there was a 1.6 percent decrease, or 54 fewer homes sold (closings) this year over last. Last month was the first time this year that closings have outpaced last year’s numbers. Although not a major decline, this decline returns us to the negative trend of fewer home closing compared to last year.
Orlando Months Supply of Inventory (MOI)—4.07 MOI
The Months’ Supply of Inventory (MOI) was up for July to 4.07 MOI. This increase in the months of supply of unsold homes favors home buyers. Experts point to a five to six-month supply of homes for sale (MOI) as a balanced market. At 4.07 MOI, Orlando is still a seller’s market, but the recent trend favors home buyers. Last year there was only a 2.62 MOI.
Orlando Real Estate Market Summary—July 2014
Since May 2013 the Orlando real estate market has added 5,674 homes to its growing inventory of unsold homes. This 70.0% increase in inventory will have an effect on Orlando’s real estate market going forward. Interest rates are still extremely low at 4.12% for a 30 year fixed-rate mortgage, so there is no buyer deterrent there. Fortunately the number of homes that sold and closed in the Orlando MSA was relatively stable and home prices are still rising.
Since Orlando’s real estate market has been heavily weighted towards home sellers for some time, the increase in inventory of homes for sale will give frustrated homebuyers an opportunity to locate and secure a suitable home. For months, homebuyers have faced competition and competing purchase offers. Now with the market trending towards a statistically balanced market of 5 to 6 months, homebuyers may finally be able to purchase their dream home before the next home buying craze hits Orlando.
Communities in Focus:
|CITIES AND TOWNS|
|Dr Phillips Area||287||112||52||$366,000||5.52||33|